Many Canadians turning to do-it-yourself investing since onset of the pandemic
Has the recent hype involving the stock market inspired you to start investing yourself?
In response to more than two million do-it-yourself (DIY) investment accounts that were opened by Canadians in 2020, the Investment Industry Regulatory Organization of Canada (IIROC) re-issued information to help investors make informed decisions.
According to Investor Economics, a financial services research firm, there was more than double the number of Canadians who opened gross new accounts in 2020--2.3 million--compared to 2019--846,000.
Additionally, from March 2020 and January 2021, there was a significant spike in the number of complaints to IIROC--DIY investors’ inquiries and complaints were up 270 per cent from March 2020 to January 2021 compared to that same period during 2019.
Further, the IIROC reminds investors capital markets are affected by numerous factors, which may result in volatility that could lead to gains as well as loss.
The agency, therefore, suggests DIY investing only for those who have ample knowledge and information, and who are comfortable making their own decisions, without financial advice.
“We urge investors to be careful about where they are getting their investing information, as many sources are unregulated and may contain inaccurate information,” Lucy Becker, vice-president of Public Affairs and Member Education Services for the IIROC, said in a news release.
“This may lead to misinterpreting investment research and subsequently betting the farm," she continued.
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